Negotiation and Counselling Unit 1, 2, 3

NEGOTIATION

CONCEPT OF NEGOTIATIONNegotiation: It is a process in which two or more individuals or groups having common or conflicting goals, state and discuss proposals for specific terms of a possible agreement. Types of Negotiation: Distributive: Often referred to as a fixed pie or fixed sum. Also known as competitive or hard bargaining negotiation. A win lose situation. Example: Purchasing a car or a house. Interest of both the parties are self serving.

CONCEPT OF NEGOTIATIONIntegrative: Often described as the win-win situation. Parties form a long term relationship for mutual gains,

ELEMENTS OF NEGOTIATIONnegotiating essentials carrel,heavrin1.

2. 3.

4.5.

The parties and their interests: The parties to a negotiation can be friends trying to agree on what movie to see or world leaders trying to avoid war. Interdependency Common goals Flexibility Ability to make a decision.

NATURE OF NEGOTIATION-lewicki, saundersA negotiation situation is one in which 1. Two or more parties must make a decision about their interdependent goals and objectives. 2. The parties are committed to peaceful means for resolving their dispute. 3. There is no clear or established method or procedure for making the decision.

FEAR OF NEGOTIATING-lewicki, saunders

Very often parties shun negotiation. But the fact is we all negotiate. The basis of most negotiations is some form of conflict and people are afraid of conflict. The concerns are Sharing a scarce resource. If we truly fear conflict, we avoid taking any position and not get what we want and we take an unrealistic position and still not get what we want.

CHARACTERISTICS OF NEGOTIATIONthe essence of negotiation hiltrop, udall1.

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Negotiation is a voluntary activity: either party can break away from or refuse to enter into discussion at any time. A negotiation usually starts because at least one of the parties wants to change the status quo and believes that a mutually satisfactory agreements is possible. Timing is a critical factor in negotiation and affects the ultimate outcome of the discussion. The progress is strongly influenced by the personal values, skills, perceptions and emotions of the parties.

TACTICS OF DISTRIBUTIVE BARGAINING-negotiation-lewicki, saunders, minton1. 2.

3. 4. 5.

6.7. 8. 9. 10. 11. 12.

Delay Silence and Bracketing. Bracketing is directing the concentration to a specific area of negotiation and then listen aggressively. Limited Authority The Bottom Line- This is the point below which you will not go. No Nibbling- Ability to withdraw and then return and then keep the pressure on. Expectation and Control-This is where you say, this part is not negotiable but that part is. Auctions- eg. I can get it cheaper somewhere else. Concessions Rationale Message Sending Deadlines

TACTICS OF INTEGRATIVE BARGAININGp112, lewicki, saunders, mintonOstrich Approach: To postpone making a decision for as long as possible and hope the problem will go away. 2. To take side with one or more of the parties (in case of multiple parties). 3. Hands off, let the experts decide: To rely on legal or expert advisers for decision making. 4. Traditional approach: Holding public hearings in which interested parties can raise their concern. But this often raises community expectations beyond what public officials can deliver. It often leads to less than satisfactory solutions, which are often not accepted by the public.1.

TACTICS OF INTEGRATIVE BARGAININGp112, lewicki, saunders, minton5.

Collaboration: It is a process through which parties who see different aspects of a problem can explore their differences and search for solutions that go beyond their limited vision of what is possible. To assemble a representative sample of the stakeholders and let them work out on an agreement among themselves.(in the given example). This option has the advantage of dealing with interrelated issues. It allows for a solution that is acceptable to all.

NATURE OF COLLABORATIVE PROBLEMSThe problems for which Collaboration offers an advantage over other methods are: 1. The problems are ill defined or there is a disagreement about how they should be defined. 2. Several stakeholders have a vested interest in the problems and are interdependent. 3. These stakeholders are not necessarily organized. 4. There may be a disparity of power/resources among the stakeholders. 5. Technical complexity can be present. 6. Existing processes have been insufficient

STRATEGY-negotiating essentialscarrell, heavrin

Negotiation strategy can be defined as the overall approach chosen when confronted with a bargaining situation. It is very often confused with tactics which are the techniques used at the bargaining table. It does not include the efforts that occur away from the bargaining table, to set up the most promising situation.

NEGOTIATION STRATEGY-carrel, heavrinFollowing are the key elements to identify before choosing a strategy. 1. Time (deadline). If you have a firm deadline, you should chose one of the three strategies a. Without revealing your deadline, work to reach a settlement well in advance. b. Declare an earlier deadline before your real deadline. c. Question negotiators on the other side about their deadlines and if you find out their deadline is before yours, work to meet it. If its a deadline for both sides, then neither has an advantage.

NEGOTIATION STRATEGY2.

3.

Information: This is the heart of negotiations. It shapes our appraisal of reality, our negotiation strategy, our BATNA, our expectations of what can be achieved and the outcome of a negotiation. The most important information we need is BATNA. Power: In the words of Patrick J. Cleary, former chairman of the National Mediation Board More than anything else-yes even more than money-the negotiation process is about power, ego and saving face

STRATEGIES-negotiating essentialscarrell, heavrin. There are 5 strategies recommended for various negotiation situations. We can chose them on the basis of time, information and power.-page 155 negotiating essentials-carrel, heavrin 1. Increments of Concession( focus on the number)Example: one time purchase of a house or car-you make concession that enable you to achieve a price or cost according to your BATNA. 2. Principled Negotiation- If integrative bargaining is preferred, this strategy can be practiced. Roger Fisher and William Ury in their book, Getting to Yes introduced the strategy of principled negotiation.

1.

2.3. 4.

Principled negotiators openly discuss the issues and interests that are important. They separate positions from interests Separate the people from the positions. Develop mutual gain options. Discuss on objective criteria such as principles and facts

1. Position versus interest A position may be defined as a specific demand that the party has chosen. Interests include the needs desires concerns and fears that caused the party to chose that position.

Position versus interest of neighbours smith and jones Smith Position-the dog must go.we will not move Interest-we need peace and quiet place, our house is new and so we prefer to stay in it.

Jones Positions-the dogs must stay, we will not move. Interests we must let the dogs out in our enclosed yards, we love the neighbourhood and want to stay in the same street near our friends.

2.Separate people from positions. People conduct negotiations. They have feelings, ego, anger and other human emotions. Position is the specific demand that a party has chosen.human responses to the positions taken by other parties can easily derail a bargaining situation that might otherwise be successful. This is practically true if the parties can maintain a long term relationship.

Example- a wife and a husband planning for a weekend. The husband wants to gout to play golf with friends and the wife to their farmhouse. The issue is not where but how do they want to spend the weekend and what do they want.

Focus on objective criteria Parties present offers based on objective criteria such as facts, principles or standards.

Develop mutual gain options- case Page 150 west coast music inc Page 161 explanation

Multiple Equivalent Simultaneous Offers(MESOs) It provides for a creation of a scoring system to compare qualitatively different issues so that the best option can be defined. 3 steps1. Identify and then prioritize issues in the negotiation, determining their weights in relative values to the parties. 2. 2. identify the different outcomes or options available for each issue establishing one as the standard and thus worth 100 points and then consider the ralative value of each other option by comparison to that standard.2.

Create three different offers, three because research indicates that parties can effectively compare three offers, without feeling overwhelmed by too many options

STRATEGIES-CONT.4.

5.

The Economic Matrix-It is applicable when a negotiation situation involves several issues of economic value and a fixed amount of resources available for the parties to negotiate. 3-D Negotiation- Negotiators David A.Lax and James K Sebenius developed this unconventional tactics. The first dimension consists of the tactics used at the bargaining table. The second dimension is the deal design i.e. specifics of a proposal. The third dimension is the set up of the negotiation- the parties involved, the issues, the sequence of issues to be decided, outside influences and the timing of negotiation. They suggest that the negotiators will be more successful, if they involve all three dimensions in bargaining

NEGOTIATION STRATEGYP23,essence of negotiation,hiltrop,udallKey points in developing strategy: 1. What points should we ask in the first session? 2. What questions are the other party, likely to ask? 3. How will we answer these questions? 4. What is our opening position? 5. Do we have enough factual data and information to support this position? 6. If not, what extra information could be available?

NEGOTIATION STRATEGYWhen negotiating as a team, following points should also be considered. 1. Who will lead the discussion? 2. Who will verify facts? 3. Who will ask what questions? Who answers the other sides questions? 4. Who will work to reduce tension? (optional, according to the situation)

NEGOTIATION STRATEGYIn addition to determine the strategy, the style to adopted should also be decided. According to Thomas and Kilmann the approaches can be grouped into five categories: 1. Collaborating: To manage by maintaining interpersonal relationships and ensuring that both parties to the conflict achieve their personal goals. 2. Compromising: This approach assumes that winwin solution is not possible. The objective is to find mutually acceptable solution which partially satisfies both the parties.

NEGOTIATION STRATEGY3.

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Accomodating: It refers to maintaining the interpersonal relationship at all cost, with little or no concern for goals of the parties involved: Controlling: The focus is to take steps for goals of the parties, whatever the cost to the relationship.A power oriented approach. Avoiding: the avoider views conflict as something to be shun at all costs. The style might take the form of diplomatically diverting an issue, postponing or withdrawing from a threatening situation.

STRATEGIES-CONT.The MESO technique involves three basic steps: 1. Identify and then prioritize three or more issues in the negotiation, determining their weights and relative values to the parties. 2. Identify the different outcomes or options, available for each issue, establishing one as the standard and then consider the relative value by comparing with the standard value. 3. Create three different offers, three because research indicates that parties can effectively compare three offers, without feeling overwhelmed by too many options.

PLANNING FOR NEGOTIATION-the neg handbook Patrich j. clearyCollect your facts It is critical to accumulate as much information as you can. If you are buying a car you can get the information on price and on the dealers actual cost. These are the empirical facts. Facts include a persons background, history, drive and goals. Know your principles Knowing your own principles is important. It should be reaffirmed periodically. Know your priorities You should divide your priorities into two lists. One should contain the items you would like to have from negotiation (what you want) and the other list should have items you must have as part of the final deal(what you have got).

PLANNING-negotiating essentialscarrell and heavrin1. 2. 3. a. b.

c.

Clearly define the expected goals i,e, what exactly do you expect to gain from the process. Clearly decide upon your BATNA-Best Alternative to a Negotiated Agreement. Identify the issuesThe greater the number, the better. Intangible issues should be listed as well as tangibles like price and quantity. Intangibles could include things like timing of payment, mode of payment etc. Add throwaways i.e. issues which have little or no value to you but could be of value to the other party.

PLANNINGSet Priorities- This can be done by a. Ranking all the issues from the highest priority to the lowest priority. b. Assigning percentage weights (relative importance ) to the items the total weight must be 100% and throwaway items can be given a 0% weight. c. Dividing the items into four broad categoriesEssential items that must be gained for a settlement. Important items that you would like to gain but are willing to trade to achieve essential or other important items. Desirable items that have secondary value. Throwaway items that may have value only to the other party.4.

PLANNING5.

Develop Support Arguments- Why about each issue should be thought of supported with facts logic and argument which could be based on certain data or a similar deal.

UNIT 2

PERCEPTION, COGNITION, AND EMOTION IN NEGOTIATIONThe basic building blocks of all social encounters are: Perception Cognition Emotion

PERCEPTIONPerception is: The process by which individuals connect to their environment.

A complex physical and psychological process A sense-making process

THE ROLE OF PERCEPTION

THE ROLE OF PERCEPTION

The process of ascribing meaning to messages and events is strongly influenced by the perceivers current state of mind, role, and comprehension of earlier communications. People interpret their environment in order to respond appropriately The complexity of environments makes it impossible to process all of the information People develop shortcuts to process information and these shortcuts create perceptual errors

THE ROLE OF PERCEPTION

Negotiators approach each negotiation guided by their perceptions... Determine exactly what is being said and what is meant. Defined as the process of screening, selecting, and interpreting stimuli so that they have meaning to the individual.

PERCEPTUAL DISTORTION

Four major perceptual errors: Stereotyping Halo effects Selective perception Projection

STEREOTYPING

One individual assigns attributes to another solely on the basis of the others membership in a particular social or demographic group. For example Age Gender Race Religion

HALO EFFECTS

People generalize about a variety of attributes based on the knowledge of one attribute of an individual. For example Positive halo effect Smiling person is honest. Negative halo effect Frowning person is dishonest.

HALO EFFECTS CONTINUED...

Halo Effects Occur in Perception when... Very little experience with the party Generalization occurs based on knowledge of the party in other contexts Party is well known Qualities have strong moral implications

SELECTIVE PERCEPTION

Occurs when the perceiver singles out certain information that supports or reinforces a prior belief, and filters out information that does not confirm that belief. For example Smiling Frowning

PROJECTION(PERCEPTUAL DISTORTION)

Occurs when people ascribe to others the characteristics or feelings that they possess themselves. For example Frustration Delays

COGNITIONCognition refers to mental processes that include attention, remembering, producing and understanding, solving problems, and making decisions. Cognitive psychology is the branch of psychology that studies mental processes including how people think, perceive, remember and learn. As part of the larger field of cognitive science, this is related to attention, memory, perception, problem solving, decision making, judgement

COGNITIVE BIASES IN NEGOTIATION

Negotiators have a tendency to make systematic errors when they process information. These errors, collectively labeled cognitive biases, tend to impede negotiator performance.

COGNITIVE BIASES

Irrational escalation of commitment Mythical fixed-pie beliefs Anchoring and adjustment Issue framing and risk Availability of information The winners curse Overconfidence The law of small numbers Self-serving biases Endowment effect Ignoring others cognitions Reactive devaluation

COGNITIVE BIASES

Irrational escalation of commitment Negotiators maintain commitment to a course of action even when that commitment constitutes irrational behavior

Mythical fixed-pie beliefs Negotiators assume that all negotiations (not just some) involve a fixed pie

COGNITIVE BIASES CONT.

Anchoring and adjustment The effect of the standard (anchor) against which subsequent adjustments (gains or losses) are measured The anchor might be based on faulty or incomplete information, thus be misleading

Issue framing and risk Frames can lead people to seek, avoid, or be neutral about risk in decision making and negotiation

COGNITIVE BIASES CONT.

Availability of information Operates when information that is presented in vivid or attention-getting ways becomes easy to recall. Becomes central and critical in evaluating events and options

The winners curse The tendency to settle quickly on an item and then subsequently feel discomfort about a win that comes too easily

COGNITIVE BIASES CONT.

Overconfidence The tendency of negotiators to believe that their ability to be correct or accurate is greater than is actually true

The law of small numbers The tendency of people to draw conclusions from small sample sizes The smaller sample, the greater the possibility that past lessons will be erroneously used to infer what will happen in the future

COGNITIVE BIASES CONFIDENCE OR OVERCONFIDENCE?We came to Iceland to advance the cause of peace. . .and though we put on the table the most farreaching arms control proposal in history, the General Secretary rejected it. President Ronald Reagan to reporters, following completion of presummit arms control discussions in Reykjavik, Iceland, on October 12, 1986. I proposed an urgent meeting here because we had something to propose. . .The Americans came to this meeting empty handed. Secretary General Mikhail Gorbachev, Describing the same meeting to reporters.

COGNITIVE BIASES CONT.

Self-serving biases

People often explain another persons behavior by making attributions, either to the person or to the situation The tendency, known as fundamental attribution error, is to: Overestimate the role of personal or internal factors Underestimate the role of situational or external factors

Endowment effect

The tendency to overvalue something you own or believe you possess

Managing Misperceptions and Cognitive Biases in NegotiationThe best advice that negotiators can follow is: Be aware of the negative aspects of these biases Discuss them in a structured manner within the team and with counterparts

Mood, Emotion, and Negotiation

The distinction between mood and emotion is based on three characteristics: Specificity Intensity Duration

Emotion, and Negotiation

Aspects of the negotiation process can lead to positive emotions Positive feelings result from fair procedures during negotiation Positive feelings result from favorable social comparison Emotions can be used strategically as negotiation gambits

Emotion and Negotiation

Aspects of the negotiation process can lead to negative emotions Negative emotions may result from a competitive mindset Negative emotions may result from an impasse

EMOTION-neg counsellingchandel,chhabra,puneet mohan

Emotions play an important role in the process of negotiation. Affect effect: Disposition of mind or affectivity influences the various stages of the negotiation process. We divide it into two parts. Positive Affect- It says that happy people are more likely to exchange information and be creative in negotiations. Its drawback is that it distorts perception of self performance, such that performance is judged to be relatively better than it actually is. Positive emotions generally have positive consequences for negotiations They are more likely to lead the parties toward more integrative processes They also create a positive attitude toward the other side They promote persistence

EMOTION Negative Affect-It has detrimental effects on various stages in the negotiation process. The most researched negative emotion is, Anger. Anger disrupts the process of negotiation and angry negotiators cooperate less. Negative Emotions They may lead parties to define the situation as competitive or distributive They may undermine a negotiators ability to analyze the situation accurately, which adversely affects individual outcomes They may lead parties to escalate the conflict They may lead parties to retaliate and may thwart integrative outcomes

CONDITIONS FOR INFLUENCE OF EMOTION IN NEGOTIATIONThere are two conditions for emotional effect1. Identification of the Affect 2. Determination that the affect is relevant and important for the judgement

COMMUNICATION

COMMUNICATION

Communication is the process of passing information and understanding from one person to another. Communication processes, both verbal and nonverbal, are critical to achieving negotiation goals and to resolving conflicts. What Is Communicated during Negotiation?

Offers, counteroffers, and motives Information about alternatives Information about outcomes Social accounts Explanations of mitigating circumstances Explanations of exonerating circumstances Reframing explanations Communication about process

Basic Models of CommunicationCommunication is an activity that occurs between two people: a sender and a receiver A sender has a meaning in mind and encodes this meaning into a message that is transmitted to a receiver A receiver provides information about how the message was received and by becoming a sender and responding to, building on, or rebutting the original message (processes referred to as feedback)

What Is Communicated during Negotiation?

Offers, counteroffers, and motives Information about alternatives Information about outcomes Social accounts Explanations of mitigating circumstances Explanations of exonerating circumstances Reframing explanations Communication about process

How People Communicate in Negotiation

Use of language Logical level (proposals, offers) Pragmatic level (semantics, syntax, style)

Use of nonverbal communication Making eye contact Adjusting body position Nonverbally encouraging or discouraging what the other says

How People Communicate in Negotiation

Selection of a communication channel

Communication is experienced differently when it occurs through different channels People negotiate through a variety of communication media by phone, in writing and increasingly through electronic channels or virtual negotiations Social presence distinguishes one communication channel from another. The ability of a channel to carry and convey subtle social cues from sender to receiver

Four Biases that Threaten E-mail Negotiations1. Temporal synchrony biasTendency for negotiators to behave as if they are in a synchronous situation when they are not 2. Burned bridge bias Tendency to do risky things during e-mail that would not be used in a face-to-face encounter 3. Squeaky wheel bias Tendency to use a negative emotional style 4. Sinister attribution bias Overlooking the role of situational factors

How to Improve Communication in Negotiation

Use of questions: two basic categories Manageable Cause attention or prepare the other persons thinking for further questions: May I ask you a question? getting information How much will this cost? generating thoughts Do you have any suggestions for improving this?

How to Improve Communication in Negotiation

Use of questions: two basic categories Unmanageable questions Cause difficulty Where did you get that dumb idea? give information Didnt you know we couldnt afford this? bring the discussion to a false conclusion Dont you think we have talked about this enough?

How to Improve Communication in Negotiation

Listening: three major forms 1. Passive listening: Receiving the message while providing no feedback to the sender 2. Acknowledgment: Receivers nod their heads, maintain eye contact, or interject responses 3. Active listening: Receivers restate or paraphrase the senders message in their own language

How to Improve Communication in Negotiation

Role reversalNegotiators understand the other partys positions by actively arguing these positions until the other party is convinced that he or she is understood Impact and success of the role-reversal technique1. Effective in producing cognitive changes and attitude changes 2. When the positions are compatible, likely to produce acceptable results; when the positions are incompatible, may inhibit positive change 3. Not necessarily effective overall as a means of inducing agreement between parties

Special Communication Considerations at the Close of Negotiations

Avoiding fatal mistakes Keeping track of what you expect to happen Systematically guarding yourself against selfserving expectations Reviewing the lessons from feedback for similar decisions in the future

Achieving closure Avoid surrendering important information needlessly Refrain from making dumb remarks

BEST PRACTICES IN NEGOTIATION AND BATNA

TEN BEST PRACTICES FOR NEGOTIATORS1.

Be prepared Understand and articulate your goals and interests Set high but achievable aspirations for negotiation

2.

Diagnose the fundamental structure of the negotiation Make conscious decisions about the nature of the negotiation: is it a distributive or integrative negotiation or blend of the two Choose strategies and tactics accordingly

TEN BEST PRACTICES FOR NEGOTIATORS3. Identify and work the BATNA Be vigilant about the BATNA Be aware of the other negotiators BATNA

4. Be willing to walk away Strong negotiators are willing to walk away when no agreement is better than a poor agreement Have a clear walkaway point in mind where you will halt the negotiation

BEST PRACTICES5. Master the key paradoxes of negotiation Claiming value versus creating value Sticking by your principles versus being resilient to the flow Sticking with the strategy versus opportunistic pursuit of new options Facing the dilemma of honesty: honest and open versus closed and opaque Facing the dilemma of trust: trust versus distrust

TEN BEST PRACTICES FOR NEGOTIATORS6. Remember the intangibles See what is not there Ask questions Take an observer or listener with you to the negotiation

7. Actively manage coalitions Coalitions against you Coalitions that support you Undefined coalitions that may materialize for or against you

TEN BEST PRACTICES FOR NEGOTIATORS8. Savor and protect your reputation Start negotiation with a positive reputation Shape your reputation by acting in a consistent and fair manner

9.

Remember that rationality and fairness are relative Question your perceptions of fairness and ground them in clear principles Find external benchmarks of fair outcomes Engage in dialogue to reach consensus on fairness

TEN BEST PRACTICES FOR NEGOTIATORS10. Continue to learn from the experience Practice the art and science of negotiation Analyze each negotiation Plan a personal reflection time after each negotiation Periodically take a less from a trainer or a coach Keep a personal diary on strengths and weaknesses and develop a plan to work on weaknesses

BATNA

BATNA=best alternative to negotiated agreement The alternative that negotiators can turn to if no agreement is reached in negotiation examples of BATNAs in Car Sale Negotiation Salary Negotiation Union-Management Negotiation

BATNA1.2. 3. 4. 5. 6. 7.

ELEMENTS OF BATNADeadlines Alternatives Ones resources Other partys resources Information Experience Knowing the interests of negotiation

BATNA

DISCOVERING BATNAPrepare a list of all possible actions that you will take if no agreement is reached Focus on some of the bright options Select the one most suited

BATNAFollowing points have to be kept in mind while determining ones BATNA Cost Feasibility Impact Consequences

UNIT 3 INTERNATIONAL AND CROSS CULTURAL NEGOTIATION

INTERNATIONAL AND CROSSCULTURAL NEGOTIATION

Factors of International NegotiationEnvironmental context Political and legal pluralism International economics Foreign governments and bureaucracies Instability Ideology Culture External Stakeholders

FACTORS OF INTERNATIONAL NEGOTIATION

Immediate Context Relative bargaining power (not just investment) Levels of conflict Relationships between negotiators Desired Outcomes Immediate Stakeholders

THE CONTEXTS OF INTERNATIONAL NEGOTIATIONS

HOW DO WE EXPLAIN INTERNATIONAL NEGOTIATION OUTCOMES?

International negotiations can be much more complicatedSimple arguments cannot explain conflicting international negotiation outcomes The challenge is to:

Understand the multiple influences of several factors on the negotiation process Update this understanding regularly as circumstances change

Conceptualizing Culture and Negotiation

Culture as learned behavior A catalogue of behaviors the foreign negotiator should expect

Culture as shared values Understanding central values and norms Individualism/collectivism Power distance Career success/quality of life Uncertainty avoidance

DIMENSIONS OF CULTURES

Hofstede studied 50 cultures and found four main dimensions to explain differences: Individualism/collectivism Power distance Career success/Quality of life Uncertainty avoidance

INDIVIDUALISM/COLLECTIVISMDefinition: the extent to which the society is organized around individuals or the group Individualism/collectivism orientation influences a broad range of negotiation processes, outcomes, and preferences Individualistic societies may be more likely to swap negotiators, using whatever short-term criteria seem appropriate Collectivistic societies focus on relationships and will stay with the same negotiator for years

POWER DISTANCEDefinition: The extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally Cultures with stronger power distance will be more likely to have decision-making concentrated at the top of the culture.

CAREER SUCCESS/QUALITY OF LIFE

UNCERTAINTY AVOIDANCEDefinition: Indicates to what extent a culture programs its members to feel either uncomfortable or comfortable in unstructured situations Negotiators from high uncertainty avoidance cultures are less comfortable with ambiguous situations--want more certainty on details, etc.

Hofstedes Cultures Ranking in the Top 10

TABLE 16.1

CONCEPTUALIZING CULTURE AND NEGOTIATION

Culture as dialectic All cultures contain dimensions or tensions that are called dialectics Example: Judeo-Christian parables too many cooks spoil the broth and two heads are better than one offer conflicting guidance This can explain variations within cultures

Culture in context No human behavior is determined by a single cause All behavior may be understood at many different levels simultaneously

CULTURE AND NEGOTIATIONCultural attribution error: tendency to overlook situational factors in favor of cultural explanations. Culture as shared values.

THE INFLUENCE OF CULTURE ON NEGOTIATION: MANAGERIAL PERSPECTIVES

Definitions of negotiation Negotiation opportunity Selection of negotiators Protocol Communication Time sensitivity Risk propensity Groups versus individuals emphasis Nature of agreements Emotionalism

THE INFLUENCE OF CULTURE ON NEGOTIATION: RESEARCH PERSPECTIVES

Negotiation outcomes Research suggests that culture has an effect on negotiation outcomes, although it may not be direct and it likely has an influence through differences in the negotiation process in different cultures Some evidence suggests that cross-cultural negotiations yield poorer outcomes than intracultural negotiations

THE INFLUENCE OF CULTURE ON NEGOTIATION: RESEARCH PERSPECTIVES Negotiation process How negotiators plan The offers made during negotiation The communication process How information is shared during negotiation

Culture has been found to have significant effects on the negotiation process, including:

Effects of culture on negotiator cognition

Accountability to a constituent influenced negotiators from individualistic and collectivistic cultures differently

THE INFLUENCE OF CULTURE ON NEGOTIATION: RESEARCH PERSPECTIVES

Effect of culture on negotiator ethics and tactics Differences exist in the tolerance of different negotiation tactics in different cultures Negotiators who trusted the other party were less likely to use questionable negotiation tactics Effects of culture on conflict resolution Within collectivistic countries, disagreements are resolved based on rules, whereas in individualistic countries, conflicts tend to be resolved through personal experience and training

CULTURALLY RESPONSIVE NEGOTIATION STRATEGIES

When choosing a strategy, negotiators should:Be aware of their own and the other partys culture in general Understand the specific factors in the current relationship Predict or try to influence the other partys approach

Strategies are arranged based on the level of familiarity (low, moderate, high) that a negotiator has with the other partys culture

LOW FAMILIARITY

Employ agents or advisers (unilateral strategy) Useful for negotiators who have little awareness of the other partys culture

Bring in a mediator (joint strategy) Encourages one side or the other to adopt one cultures approaches or mediator culture approach

Induce the other party to use your approach(joint strategy) The other party may become irritated or be insulted

MODERATE FAMILIARITY

Adapt to the other negotiators approach (unilateral strategy) Involves making conscious changes to your approach so it is more appealing to the other party Coordinate adjustment (joint strategy) Involves both parties making mutual adjustments to find a common process for negotiation

HIGH FAMILIARITY

Embrace the other negotiators approach(unilateral strategy) Adopting completely the approach of the other negotiator (negotiator needs to completely bilingual and bicultural)

Improvise an approach (joint strategy) Crafts an approach that is specifically tailored to the negotiation situation, other party, and circumstances

Effect symphony (joint strategy) The parties create a new approach that may include aspects of either home culture or adopt practices from a third culture